MVB Financial in Fairmont, W.Va., plans to buy a minority stake in a mortgage company.
The $2.8 billion-asset company said in a press release Monday that it will acquire a 38% interest in Warp Speed Holdings for $48 million in cash and stock. The deal is expected to close in mid-2022.
Warp is the parent for a group of companies that includes CalCon Mutual Mortgage, One Trust International and Warp Speed Mortgage. Warp also has investments in Click2Bind Insurance, Empower Title and Grind Analytics.
Warp’s companies originated over $4 billion of loan volume in 2020 and 2021. Warp also has a direct-to-consumer channel.
“This investment is a continued extension of our partnership model with leading financial service providers that focus on using technology to deliver a superior customer experience and attractive financial results,” Larry Mazza, MVB’s CEO, said in the release.
Raymond James and Squire Patton Boggs advised MVB.
MVB, which has invested heavily in fintech-related businesses tied to cryptoand gaming, also said during its investor day that it plans to generate $100 million in incremental annual revenue by the end of 2024.
The company, which has about $155 million of annual revenue, said about $30M of the new revenue would involve net interest income and $70M would come from noninterest income.